THE DEAL: AN UPDATE FROM JEREMY. As we move into the second half of 2025, Perth’s property market keeps proving its strength, even with a few bumps along the way. Late last year and again just before Easter, listing numbers jumped sharply to over 5,000, up from around 3,500 in 2024. For buyers used to slim pickings, this felt like a flood of new choice, but it was still far below the 13,000 listings needed for a balanced market. Since Easter, stock has tightened again, dipping under 3,500 as the new financial year began. Throw in the buzz about possible interest rate cuts and REIWA forecasting another 10% growth, and you can see why Perth’s market remains strong. The median house price now sits at $786,000 (up from $745,000 after a big 24% jump last year) and we could see that break the $800,000 mark by year’s end if momentum holds. It’s not just established homes getting pricier, the average cost to build has climbed to around $550,000, up 47% since 2020, with build times now blowing out to an average of 17.8 months. So new supply isn’t catching up anytime soon. On the flip side, demand keeps growing fast. WA’s population rose by 2.8% in 2024, the biggest jump in the country, bringing in over 67,000 new residents, mostly through international migration. Add it up: supply remains tight, demand is strong, and prices keep pushing upwards. But here’s the catch: affordability is taking a hit. Back in 2020, the average WA homeowner spent about 14% of their income on their mortgage. Now, it’s closer to 40.8%, still under the national average of 48%, but a big jump that leaves owners more exposed. So, whilst price growth keeps ticking along and buyers remain desperate, if you look close enough the cracks of this boom are starting to show. With such a big chunk of income now tied up in mortgages, homeowners are far more sensitive to rate changes, rising living costs and maintenance bills. Many have smaller financial buffers, leaving them exposed if unexpected costs hit or incomes drop. While there are early signs that buyers are becoming more cautious, with price growth starting to soften and the rental market easing slightly, we’re still a long way from a balanced or buyer-friendly market. Carefully planning your next move has never been more important. +61 422 433 225 jeremy@whitefoxrealestate.com.au Jeremy Shirazee, Senior Advisor & Negotiator
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